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Tuesday, August 10, 2010

Kiev Office Market - Absorbtion Rate Is 150% at 1H

According to Colliers International, absorption rate for office space in Kiev grew up to 150% at 1H 2010, comparing with the same period at 2009. The estimated market volume increased to K60 sqm.

In Colliers notes that the increase was due the fact, that companies were moving to higher grade office spaces, as well as companies expanded their presence in the current office centers, where they occupy office space. Most significant figure was the consumption by the financial sector, which rised up to 16%.

Neet to mention, that in Kiev, at 2009, office space demand, showed by the financial sector has dropped significantly because global economic crisis, and reached only 6% of the total number of transactions. Whereas in 2006-2008 share of transactions of the financial sector ranged 35-40%.

Meanwhile, demand for quality office space by large international companies, according to Colliers, is still high, but to satisfy that, it is becoming pretty difficult due to the lack of high-quality office property with large open-space whole areas. There are not enough areas exceed over 2000 which were occupied during 2009 and not presented at the market so far.